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H i g h e r r e a l i s a t i o n d r i v e s ma r g i n s…
JK Lakshmi Cement reported net sales of | 392 crore (up ~21% YoY and
down ~5% QoQ) and net profit of | 23 crore (up 35% YoY and down
~29% QoQ). These were above our respective estimates of | 355 crore
and | 19 crore on account of higher-than-expected realisation, which
increased ~5% QoQ to | 3473 per tonne against our expectation of |
3148 per tonne. The EBITDA per tonne improved to | 654/tonne in
Q1FY12 as against | 483/tonne in Q4FY11 due to an increase in
realisations. The company plans to increase its capacity to 8.1 MTPA by
end of FY13E through setting up a 2.7 MTPA greenfield plant at Durg and
0.55 MT of grinding units. We expect volume growth of 6% CAGR over
FY11-13E with 4.9 MT in FY13E from 4.3 MT in FY11 on account of an
improvement in utilisation rates. We estimate an EBITDA per tonne of |
577 in FY12E and | 598 in FY13E against | 451 in FY11.
ƒ Sales volume up ~10% YoY, realisation up ~10% YoY
Cement sales volumes increased ~10% YoY to 1.13 MT but
declined ~10% QoQ. Realisations increased ~10% YoY (~5% QoQ)
to | 3473 per tonne due to an increase in prices across its markets.
ƒ EBITDA/tonne improves to | 654 (up ~18% YoY, ~10% QoQ)
The EBITDA/tonne has improved ~18% YoY to | 654 on the back of
an increase in realisation, which negated the impact of a rise in the
total cost per tonne. Sequentially, the EBITDA/tonne has improved
~10%.
V a l u a t i o n
At the CMP of | 46, the stock is trading at 6.4x and 6.3x its FY12E and
FY13E earnings, respectively. The stock is trading at an EV/EBITDA of 5.8x
and 6.9x FY12E and FY13E EBITDA, respectively. On an EV/tonne basis,
the stock is trading at $59 and $53 its FY12E and FY13E capacities of 5.4
MT and 8.1 MT, respectively. We have valued the stock at $60/tonne at its
FY13E capacity of 8.1 MT. We have maintained our BUY rating on the
stock with a target price of | 61 per share.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
H i g h e r r e a l i s a t i o n d r i v e s ma r g i n s…
JK Lakshmi Cement reported net sales of | 392 crore (up ~21% YoY and
down ~5% QoQ) and net profit of | 23 crore (up 35% YoY and down
~29% QoQ). These were above our respective estimates of | 355 crore
and | 19 crore on account of higher-than-expected realisation, which
increased ~5% QoQ to | 3473 per tonne against our expectation of |
3148 per tonne. The EBITDA per tonne improved to | 654/tonne in
Q1FY12 as against | 483/tonne in Q4FY11 due to an increase in
realisations. The company plans to increase its capacity to 8.1 MTPA by
end of FY13E through setting up a 2.7 MTPA greenfield plant at Durg and
0.55 MT of grinding units. We expect volume growth of 6% CAGR over
FY11-13E with 4.9 MT in FY13E from 4.3 MT in FY11 on account of an
improvement in utilisation rates. We estimate an EBITDA per tonne of |
577 in FY12E and | 598 in FY13E against | 451 in FY11.
ƒ Sales volume up ~10% YoY, realisation up ~10% YoY
Cement sales volumes increased ~10% YoY to 1.13 MT but
declined ~10% QoQ. Realisations increased ~10% YoY (~5% QoQ)
to | 3473 per tonne due to an increase in prices across its markets.
ƒ EBITDA/tonne improves to | 654 (up ~18% YoY, ~10% QoQ)
The EBITDA/tonne has improved ~18% YoY to | 654 on the back of
an increase in realisation, which negated the impact of a rise in the
total cost per tonne. Sequentially, the EBITDA/tonne has improved
~10%.
V a l u a t i o n
At the CMP of | 46, the stock is trading at 6.4x and 6.3x its FY12E and
FY13E earnings, respectively. The stock is trading at an EV/EBITDA of 5.8x
and 6.9x FY12E and FY13E EBITDA, respectively. On an EV/tonne basis,
the stock is trading at $59 and $53 its FY12E and FY13E capacities of 5.4
MT and 8.1 MT, respectively. We have valued the stock at $60/tonne at its
FY13E capacity of 8.1 MT. We have maintained our BUY rating on the
stock with a target price of | 61 per share.
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